Technology

Social media revenue to jump 43% to $16.9 bn in 2012: Gartner

MUMBAI: Global social media revenue is forecast to reach $16.9 billion in 2012, up 43.1 per cent from 2011 revenue of $11.8 billion, according to Gartner.


Advertising is, and will continue to be, the largest contributor to overall social media revenue and is projected to total $8.8 billion in 2012. Social gaming revenue more than doubled between 2010 and 2011 and is expected to reach $6.2 billion in 2012, while revenue from subscriptions is expected to total $278 million this year.


Gartner senior research analyst Neha Gupta said, "Usage of online social media has matured, and more than one billion people worldwide will use social networks this year. Although the number of social media users is large, and in some cases increasingly mature in their usage patterns, the market is still in its early stages from a revenue perspective."


Gartner expects the number of social media users will continue to increase at a moderate pace. New forms of media and entertainment will keep users engaged on social media sites and attract new ones. Rising competition among social media players, each vying for consumers‘ leisure time and attention, will lead to the rise of new forms of social media (Web based and mobile).


Marketers are allocating a higher percentage of their advertising budget to social networking sites. This is mainly driven by the fact that these sites offer a large pool of engaged users who spend considerable time on these sites — this increases the potential click-through rates (CTRs).


Social media sites enable marketers to target ads to discrete consumer segments by unlocking the interconnected data structures of users that include lists of friends, their comments and messages, photos and all their social connections, contact information and associated media.


"Social media sites are becoming more innovative in their ad products to attract marketers" . Social networking sites should deploy data analytic technologies that interrogate social networks to give marketers a more accurate picture of trends in accordance with consumers‘ needs and preferences" added Gupta.


Gartner analysts said that social media sites will continue to incorporate gaming techniques on their networks, driven by the monetization opportunities that it presents. The sale of virtual goods will remain the primary source of revenue. Major console gaming publishers have recently entered the social gaming arena and are adding momentum to the social gaming industry by utilising their intellectual properties.


Gartner expects this trend to have a favourable impact on social gaming revenue as consumers are likely to be attracted to familiar gaming titles. Some of the big social developers such as Zynga, GREE and DeNA have moved to an open-platform strategy, enhancing user convenience and choice.


The growth in users paying for professional networking accounts will continue to grow. However, social sites are moving toward lower subscription fees and shifting focus to other sources of revenue, such as advertisement-based sales. This is corroborated by the fact that many of the professional sites (including LinkedIn and Xing) that charge for premium services observed a decline in the subscriptions revenue ratio. Apart from a few exceptions, Gartner continues to see limited success with the premium subscription models.


The sale of virtual goods outside of social gaming is the largest revenue earner in the "other" category. The trend to sell high-value advisory services (such as public relations and reputation management) to brands so that they can better manage their presence on social networks is on the rise and is expected to continue.


Payments on social media sites will increase, providing increased revenue opportunities to social media sites to serve as a payment platform for transactions of digital content (to pay for applications, such as part of Facebook), as part of social gaming (for example, FarmVille), or to
make a person-to-person (P2P) payment to another user of the network site. New revenue opportunities for social media will also arise as both mobile and TV platforms integrate with social networking as a core service.


"New revenue opportunities will exist in social media, but no new services will be able to bring significant fresh revenue to social media by 2016. The biggest impact of growth in social media is on the advertisers. In the short and medium terms, social media sites should deploy data analytic techniques that interrogate social networks to give marketers a more accurate picture of trends about consumers‘ needs and preferences on a customized basis. In the meantime, however, they should also continue to exploit other channels of revenue like mobile advertising and social commerce," added Gupta.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/12/apac.jpg?itok=bF0asHD5
APAC may lead US$ 6-bn b'cast equipment market growth by '23

The global broadcast equipment market is expected to expand from USD 4.38 billion in 2017 to USD 5.82 billion by 2023, at a CAGR of 4.87 per cent between 2017 and 2023.

Technology Hardware Components
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/31/Jaco%20Du%20Plooy.jpg?itok=sIMqVukw
Irdeto's Cloakware to safeguard tech brands

MUMBAI: Irdeto, a leader in digital platform security, has announced the launch of its next-generation Cloakware™ Software Protection solution. Designed for the world’s largest and most innovative brands, the solution provides resilient and durable protection against cyberattacks.

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/31/Untitled-1_1.jpg?itok=hNcifMd6
TV channels get unique AI: Zone TV & Ooyala partner Microsoft

MUMBAI: ZoneTV, taking a quantum leap forward in the linear TV experience, will utilize media logistics tools from Ooyala, a global provider of video monetization technology and services, plus Video Indexer, part of Microsoft Cognitive Services, to automate the curation of content of a first-of-...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/29/harsh-vardhan.jpg?itok=P9-7bLs-
From lab to end-user: India launches TV, radio & FB integrated server 'Sagar Vani'

The India government, in order to effectively disseminate ocean-related advisories from the lab to the end-user, has developed 'Sagar Vani'.

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/25/Michael%20Hawkey.jpg?itok=35fg5o6z
Japan's KDDI adopts TiVo’s remote-recording service

MUMBAI: TiVo Corporation, a leader in entertainment technology and audience insights, has announced that KDDI Corporation, a leading Japanese telecommunications provider, has selected TiVo’s remote recording service for G-GuideÒ and will also implement new voice control features to deliver one of...

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/13/Kalli_Purie-Subrat_Kar.jpg?itok=077b2Tdu
AajTak topples Times of India as the top news video page on Facebook

New Delhi, 13th July 2017: AajTak-India’s No.1 News channel- has also topped the rankings on the digital space by becoming the most popular on social network for continuous 3 months with over 29.7 million video viewership on Facebook in May, 2017. By crossing this monthly viewership mark, AajTak...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/07/11/samir%20armaly%20tivo.jpg?itok=bykYFSL3
TiVo renews IP licence with Foxtel, deliver ultimate experience in Australia

MUMBAI: TiVo Corporation, a leader in entertainment technology and audience insights, has announced that Foxtel, Australia’s leading pay-TV platform, has signed a multi-year intellectual property (IP) licence renewal. This agreement offers Foxtel ongoing access to TiVo’s industry-leading...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/06/28/App-Annie.jpg?itok=hCYCsP8J
India tops in avg app downloads per month

NEW DELHI: A new study shows that Indians led in the number of apps downloaded per month in the first quarter of 201

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/06/27/VOD.jpg?itok=_oQQtakd
VoD software market may expand to $ 7.5 bn by '22, A-Pac leads

MUMBAI: The global video streaming (VoD) software market size is expected to grow from USD 3.25 billion in 2017 to USD 7.50 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 18.2%. The major factors driving the video streaming software market are increasing traction of VaaS in enterprises...

Technology Software Applications

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories